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Globalization: The Misery of the Middle Class Ensured

Ensured destruction of the middle class. Thank you Bill Clinton, Obama, and W. Collective apology to H. Ross Perot.

https://foreignpolicy.com/2019/10/22/economists-globalization-trade-paul-krugman-china/

excerpt below

Paul Krugman and other mainstream trade experts are now admitting that they were wrong about globalization: It hurt American workers far more than they thought it would. Did America’s free market economists help put a protectionist demagogue in the White House?

Note that they are admitting that Trump was right all along about everything, but cling to Never-Trumpism and even insult him for being right by calling him a "protectionist demagogue." --- Jealous much?
Roundandroundwego · 61-69 Best Comment
"Free Trade" had to be fast tracked into "law" before people could understand how harmful it was going to get. Nobody imagined we'd get that race to the bottom.

Broache73 · 46-50, F
Whether we have NAFTA and CAFTA or not, Mainstream Pundits and Talking Heads spread gobblygoop about great Job numbers and amazing Economic growth, by and large they completelyignore the fact the entire Economy is built onDebt. Ross Perot warned about this during his Campaign. Trade Deficits only explain a fraction of the United States Government underlying Problems...

The US Bubble Economy is drowning in;

• Government Debt...
The Federal Deficit will to hit $1 Trillion this year, up from $966+ illion from the Fiscal Year ending last September.

• Public Debt...
Amounting to $125,000 per American Household. The US Treasury borrowed $500+ Billion in the first quarter. According to the CBO, payments on the Debt cesspool will roughly triple to $915+ Billion in 10 years. The current trajectory suggeststhe Cost of the Annual Interest payments on the US Debtwill equal the Annual Cost of the Social Security Ponzi Scheme, which Costs will exceed Income this year earlier than expected. The Bernie Madoff style Social Security Trust Fund will deplete entirely before 2034 of not sooner.

• Consumer Debt...
Total Consumer Debt rose by $176 Billion in Q2, a 4.8% Year-on-Year increase. Total Debt a record $3.87 Trillion. Outstanding Credit Card balances crossed the $1.5+ Trillion threshold. Auto Loans and Leases for Vehicles rose to a record of $1.13+ Trillion Dollars increasing by $40 Billion Dollars. Student Loans jumped by 5.8%+ in Q2, increasing $84 Billion, to $1.53+Trillion. The US Education Department forecasted a $50+ Billion shortfall in Government Student Loan Programs last November.

• Corporate Debt...
Corporate Debt is 45% of GDP. According to Moody’s, the majority of US Companies have a “speculative” Credit rating, meaning they're considered high risk. The last time the Corporate Debt to GDP ratio was this high was before the 2008 Financial Crisis, and right before the 2000 Technological Bubble popped. There's $1.27 Trillion Dollars in Junk Bonds in the Marketplace. Research is,14.6% of S&P 1500 Companies are zombies, meaning their earnings before Interest and Taxes fail to cover their Interest expense. Corporate Credit downgrades have outpaced Credit upgrades.

• Global Debt...
At the peak of the last Credit Bubble, US Debt across Household, Business, and Government totaled $30+ Trillion, or 225% of GDP. Now standstills at $50 Trillion, or 250% of GDP. The Global Economy has added $25+ Trillion of Debt over the past year to reach 318% of Global GDP. Global leveraged lending reached a new high of $1.6+ Trillion in 2017, surpassed the previous record in 2007. Most leveraged Loans are “covenant-lite,” with fewer restrictions on Collateral, payment terms and level of Income.

As anyone can clearly see, there's Debt, Deficits, Dependency, and Inflation AS FAR AS THE EYE CAN SEE. Exploding Debt will blow the Economy into a Crisis. The Political Indentured Servants on Both ends of Pennsylvania Avenue made it clear that they aren't interested in reducing the growth in Debt. Likewise, gullible and appallingly ignorant American Voters and Taxpayers aren't willing to hold their Representatives Fiscally accountable. We know Debt will continue until it brings a Economic and Financial Crisis, as Sub-prime Mortgages grew until 2008 when a Crisis forced Lenders and Borrowers to stop. The difference is that Government Debt is at the center of the current Credit Bubble.

It begs another question;
• What in the name of good common sense would lead the American Consumers to be unable to comprehend;
Debt and Deficits isn't Wealth...
Paper isn't Money...
Free Stuff isn't Justice...
Warmongering isn't Peace...
Force isn't Morality
Aggression isn't Moral...
Government coercion isn't Liberty...
Burnley123 · 41-45, M
If you are against international globalisation, then I can't see how supporting Trump is the answer. Its a good article and people should read it.

Free trade and neoclassical economics came in during the neoliberal period of Thatcher and Reagan. Its a tragedy that the nominal centre left accepted this new political reality and went even further with deregulation.
Elessar · 26-30, M
@Burnley123 Nominal center left being neoliberal/capitalists "moderates" who'd rather lose to Trump than anyone actually left of center (even slightly) 😅
Burnley123 · 41-45, M
@Elessar As a Corbyn supporter who is still in the Labour Party, I'm not likely to disagree!
4meAndyou · F
It's fabulous that they are finally admitting what they've done to us...now that they've done their dirty deeds. I once voted for Perot. 😔
centralization is a dirty word..
pdxlinux · 41-45, M
@TheOneyouwerewarnedabout i'm not familiar with that concept . i will look it up. thanks. i am guessing that it has to do with cronies / globalist elites preventing anyone else from participating in the economy and foreign policies.
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BigGuy2 · 26-30, M
It's the 'middle classes' that fuelled the modern world

 
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